Oak Ridge, Tennessee Short Term Rental Regulations Guide for Airbnb hosts

Overview and Bottom Line

Short-term rentals (STRs) are legally permissible in Tennessee under the statewide Tennessee Short-Term Rental Unit Act (SB1086). However, in Oak Ridge, Tennessee, there is no city-specific STR ordinance. Instead, Oak Ridge regulates lodging uses through its zoning code using the Bed and Breakfast (Residence) and Bed and Breakfast (Inn) categories. As a practical matter, non‑owner‑occupied STRs are not recognized as a permitted use in residential zoning districts; only owner‑occupied Bed & Breakfast operations in limited residential zones are allowed, subject to strict conditions. Operators seeking to run any STR‑style business in Oak Ridge should treat it as a Bed & Breakfast approval process and assume that non‑owner‑occupied rentals will not be viable without a rezoning or variance, which is typically very difficult to obtain. See the “Oak Ridge Local Allowability and Zoning” section for detailed conditions and restrictions.

Investors should start by confirming the exact zoning of the property and whether it is eligible for an owner‑occupied Bed & Breakfast. If the property does not qualify under the Bed & Breakfast (Residence) provisions, consider alternative investment strategies, including long‑term rentals or properties located in jurisdictions with explicit STR allowances.

What do Airbnb hosts actually earn in Oak Ridge?

Oak Ridge hosts earn a median $33,353/year with $126 ADR and 78% occupancy.

Top performers pull in $41,642+ per year.

See the full Oak Ridge market breakdown

State of Tennessee STR Framework (SB1086)

Tennessee’s Short-Term Rental Unit Act provides the statewide baseline:

Definition: A short-term rental unit (STR) is a residential dwelling, including units in single‑family or multifamily buildings, rented wholly or partially for a fee for less than 30 continuous days. Hotels, tourist courts, tourist camps, tourist cabins, and motels are excluded.
Insurance requirement: Maintain liability insurance of at least $500,000 unless the listing marketplace provides equivalent coverage.
Safety equipment: Fire sprinklers, smoke alarms, and carbon monoxide alarms must be present in the property.
Local authority: The Act allows local governments to regulate STRs to protect public health and safety by the least restrictive means, but they cannot prohibit the use of property as a STR based on its classification or occupancy. Cities have used this latitude to impose permit regimes, zoning limits, and operating rules.

Statewide, STR operators must also:

Obtain both county and city business licenses before applying for any local lodging permit/certificate.
Collect and remit applicable room/occupancy taxes and sales taxes.
Comply with any local zoning, safety, occupancy, parking, signage, and noise regulations.
Submit required documentation for local permits (e.g., ID, EIN/SSN/ITIN, proof of ownership/residency, site/floor plans, insurance, inspections).

Source:

Oak Ridge Local Allowability and Zoning

Oak Ridge does not have a stand‑alone STR ordinance. STR‑type uses are handled through zoning classifications for Bed & Breakfast operations:

Bed & Breakfast (Residence) (Oak Ridge Zoning Ordinance, Article III, Section 3.34):
- Private residence offering sleeping accommodations in four or fewer rooms.
- Must be owner‑occupied.
- Located in an appropriately zoned area and compliant with tax, fire, building, and health requirements.
- Guests are transient, staying no more than seven consecutive days.
- Impact is intended to be similar to a private home with frequent houseguests, with parking as a key consideration.
- Conditions likely include strict occupancy limits, on‑site owner presence, and compliance with residential character.
Bed & Breakfast (Inn) (Oak Ridge Zoning Ordinance, Article III, Section 3.35):
- Private, owner‑occupied or operator‑managed business with four to twenty guest rooms.
- Operated primarily as a business (distinct from the Residence category).
- Subject to additional business‑oriented requirements.

Implications for STR investors:

Non‑owner‑occupied STRs are not provided for in Oak Ridge’s residential districts. Attempts to operate as a de facto STR without meeting Bed & Breakfast criteria are likely to be treated as illegal lodging uses in residential zones.
Owner‑occupied Bed & Breakfast (Residence) is the only viable STR‑like pathway in residential areas. Even then, the use remains conditional; operators should expect to demonstrate compliance with occupancy limits, safety equipment, parking, and neighborhood compatibility.
Commercial or mixed‑use zoning may offer different pathways, but any lodging use still requires zoning compliance and likely a certificate of occupancy and business licensing.

Source:

www.nrc.gov/docs/ML2215/ML22157A452.pdf (Oak Ridge Zoning Ordinance)

How to Start a STR‑Style Business in Oak Ridge (Step‑by‑Step)

Given the local zoning framework, treat an STR as a Bed & Breakfast (Residence) unless you secure a zoning change. The following steps are recommended:

Confirm zoning eligibility.
- Verify the zoning district and whether Bed & Breakfast (Residence) is allowed.
- Ensure you can meet the owner‑occupancy requirement and the four‑room limit.
- Review parking, signage, and neighborhood impact considerations.
Assess structural and safety readiness.
- Confirm compliance with the state’s safety baseline: smoke alarms, carbon monoxide detectors, and fire extinguishers; fire sprinklers if required.
- Plan for any inspections associated with Bed & Breakfast operations.
Obtain required business licenses.
- Apply for Anderson County business license and City of Oak Ridge business license.
- Pay any applicable fees.
Prepare permit application documentation.
- Owner identification and proof of residency.
- Proof of ownership or lease authorization.
- Site plan and floor plan showing rooms, exits, detectors, and extinguishers.
- Insurance (general liability; consider $500,000 minimum as a baseline for STR exposures).
- Completed life safety compliance forms.
- Any affidavits or notices required for neighborhood compatibility.
Submit permit applications and schedule inspections.
- Apply through the CityView Portal for any building/zoning permits and the Bed & Breakfast approval process.
- Cooperate with Codes Enforcement inspections for safety compliance.
Implement operating procedures.
- Limit occupancy to four rooms or fewer.
- Cap stays at seven consecutive days.
- Post the name and phone number of the responsible party within the unit.
- Manage noise, parking, trash disposal, and guest conduct to protect residential character.
Tax registration and remittance.
- Register for sales tax and any applicable room/occupancy taxes with the Tennessee Department of Revenue.
- Collect and remit local lodging taxes once confirmed with the city/county.
Renewals and ongoing compliance.
- Renew business licenses annually.
- Maintain insurance and life safety equipment.
- Keep records for tax remittance and inspections.

Sources:

Required Documents, Permits, Licenses, and Guidelines

State-level baseline:
- Personal ID, EIN, SSN or ITIN.
- Proof of ownership or authorization.
- Proof of residency (for owner‑occupied Bed & Breakfast).
- Liability insurance (minimum $500,000 recommended).
- Life safety documentation (smoke alarms, carbon monoxide detectors, fire extinguishers; sprinklers if required).
- County and city business licenses.
Local application and review:
- Short‑Term Rental/Bed & Breakfast application (through Codes Enforcement and CityView Portal).
- Site plan and floor plan showing rooms, exits, windows, doors, and safety devices.
- Notarized affidavits or statements confirming accuracy of information.
- Neighborhood notice or compatibility statement where applicable.
- Scheduling and passing required inspections.
Ongoing obligations:
- Certificate of occupancy (if required).
- Posting responsible party contact information inside the unit.
- Adherence to occupancy limits and stay durations.

Sources:

Specific Regulations: City of Oak Ridge, Anderson County, and Tennessee

Tennessee (statewide, SB1086):
- Liability insurance ≥ $500,000 unless covered by marketplace.
- Smoke alarms, carbon monoxide alarms, and fire sprinklers required.
- Local governments may regulate STRs to protect health and safety.
- Operators must hold county and city business licenses, collect/remit taxes, and comply with zoning.
Anderson County:
- County business license required.
- County lodging/occupancy taxes apply; rates are set by county and may be remitted through the County Trustee. Confirm exact rate with Anderson County Trustee.
City of Oak Ridge:
- No dedicated STR ordinance; lodging uses are regulated via Bed & Breakfast zoning categories.
- Bed & Breakfast (Residence): owner‑occupied, four or fewer guest rooms, transient stays no more than seven consecutive days, in appropriately zoned areas, with compliance to tax, fire, building, and health requirements.
- Bed & Breakfast (Inn): owner‑occupied or operator‑managed business with four to twenty guest rooms, operated primarily as a business, subject to additional business conditions.
- Safety and inspections via Codes Enforcement; permits and plan reviews through CityView Portal.

Sources:

Enforcement and Compliance

Codes Enforcement issues building permits and administers/enforces building, housing, plumbing, mechanical, electrical, zoning, environmental, and nuisance ordinances.
Violations of zoning or safety codes can result in enforcement action, including citations, cease and desist orders, and revocation of permits.
The Building Board of Adjustments and Appeals reviews properties posing safety risks; decisions can affect the ability to operate lodging uses.
To maintain compliance, owners should proactively engage Codes Enforcement, maintain documented inspections and renewals, and ensure that operations remain consistent with Bed & Breakfast conditions.

Source:

www.oakridgetn.gov/188/Codes-Enforcement

Taxes and Fees

State and local sales tax: Operators must register with the Tennessee Department of Revenue and collect/remit sales tax on lodging charges. The combined state and local sales tax rate typically ranges around 9.25%–9.75%, depending on jurisdiction. Confirm the exact rate applicable to Oak Ridge and Anderson County with the Department of Revenue or local tax authority.
Room/occupancy tax: County lodging taxes apply. Anderson County’s current lodging tax rate should be confirmed with the County Trustee; remittance is typically through the county.
Business licenses: City and county business licenses are required; fees are generally nominal (commonly in the $15 range for each), subject to change.
Permit and inspection fees: Fees vary by project scope and are handled through Codes Enforcement and the CityView Portal.

Source:

Contact Information (Local Authority in Charge)

Codes Enforcement (Planning & Development Department)
- Phone: 865‑425‑3532
- Email: codes@oakridgetn.gov
- Portal: CityView Permit Portal
Building Official
- Lisa Crumpley
- Phone: 865‑425‑3583
- Email: lcrumpley@oakridgetn.gov
City of Oak Ridge (General Contact)
- 200 South Tulane Avenue, Oak Ridge, TN 37830
- Phone: 865‑425‑3400
- After‑hours: 865‑425‑4399
- Website: www.oakridgetn.gov

Source:

www.oakridgetn.gov/188/Codes-Enforcement

Source Pages

Tennessee Short-Term Rental Laws Overview: www.gosummer.com/post/tennessee-short-term-rental-laws
Tennessee Short-Term Rental Unit Act (SB1086): www.capitol.tn.gov/Bills/110/Bill/SB1086.pdf
Oak Ridge Codes Enforcement (Permitting and Contact): www.oakridgetn.gov/188/Codes-Enforcement
City of Oak Ridge Permit Portal (CityView): portal.oakridgetn.gov/portal/
Oak Ridge Zoning Ordinance (B&B definitions and general provisions): www.nrc.gov/docs/ML2215/ML22157A452.pdf

Practical Guidance for Investors

Do not assume non‑owner‑occupied STRs are viable in Oak Ridge. The zoning pathway is limited to owner‑occupied Bed & Breakfast (Residence) in appropriate zones.
Before purchasing, verify the property’s zoning and eligibility for Bed & Breakfast (Residence). Discuss parking, signage, and neighborhood impacts with Codes Enforcement.
Budget for compliance costs: business licenses, safety equipment, inspections, taxes, and potential professional consultations for zoning analysis.
Maintain meticulous records for insurance, inspections, tax remittance, and guest policies to demonstrate ongoing compliance and protect the investment.

If you cannot satisfy Oak Ridge’s Bed & Breakfast requirements, consider nearby municipalities with explicit STR ordinances or pivot to long‑term rental strategies to preserve asset performance while respecting local regulations.

Next step

Found a property in Oak Ridge?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Oak Ridge